Does the Bevaris Alliance franchise agreement limit the Franchisor's obligation to mitigate a loss?

According to the 2024 Bevaris Alliance Franchise Disclosure Document, the franchise agreement does not restrict or limit Bevaris Alliance's general obligation at law to mitigate a loss it may suffer or incur as a result of an event that may give rise to a claim under an indemnity. This means that Bevaris Alliance is legally obligated to take reasonable steps to minimize any losses they might experience that could lead to a claim under the indemnity clause.

For a prospective franchisee, this is a beneficial term. It ensures that Bevaris Alliance cannot simply allow losses to accumulate without taking action to reduce them, which could potentially increase the financial burden on the franchisee under the indemnity. The indemnity clause likely requires the franchisee to cover certain losses or liabilities incurred by Bevaris Alliance under specific circumstances, so the mitigation requirement helps protect the franchisee from excessive claims.

This type of clause is fairly standard in franchise agreements. It reflects the legal principle that parties should take reasonable steps to avoid or minimize damages, and it provides a degree of fairness and protection for both the franchisor and the franchisee. Franchisees should carefully review the indemnity provisions in conjunction with this mitigation clause to fully understand their potential liabilities and the franchisor's responsibilities.